Business interruption insurance can serve as an important tool for virtually every company out there. It’s added assurance that operations can continue ahead when the unexpected strikes. It’s increased financial security for your company and team members. It’s customizable to your unique needs. At the same time, it’s something not every organization takes advantage of. Did you know the Insurance Information Institute reports that 40% of businesses fail to reopen following a disaster situation? And that another 25% close within a year?
As your organization takes its first steps into the new year, now is an ideal time to evaluate your existing coverage (including business interruption insurance) and determine whether you’re adequately protected. Here are some factors to consider as you dig in on the task.
How Business Interruption Insurance Can Help
Bills and operation costs don’t cease simply because your company isn’t able to open its doors. Business interruption insurance is designed to ensure your company has access to needed funds in the event that equipment damage, a natural disaster or similar event makes it impossible to carry out normal operations. That can mean assistance with everything from rental payments for your company’s existing property, to fees associated with temporary relocations and even payroll assistance while you work to get things up and running again. Our Business Interruption Overview Sheet offers a high-level look at associated protections.
Business Interruption Insurance is Only Part of Your Solution
Quality business insurance plays an important role in keeping companies on solid financial footing, but it isn’t the be-all and end-all. Ideally, such coverage will serve as part of your organization’s overall risk management approach. (After all, the best defense is a good offense, right?) We recommend working closely with a trusted risk advisor to evaluate your existing operations, find areas that could use some improvement, and then take steps to move forward in a safer, smarter and more strategic manner. Our Steps to Sidestep Business Interruptions Sheet provides great tips to get you started.
No business owner wants to contemplate the idea of operations grinding to a halt, but thinking through such scenarios is the best way to come out even stronger after the fact. If you have questions about business interruption insurance — or any other aspect of business insurance — feel free to contact the BCH team. Our experts understand the ins and outs of such coverage, and we’re here to help find your right fit.